by: Michael Saunders
When it comes to obtaining a new credit card, you may not have as many choices as people who already have good credit. But you should still do some comparison shopping to make sure you are getting the best deal available to you. Credit card terms and interest rates vary - and some of those variations can make a huge difference to your wallet. Always shop for the card with the best interest rate and terms.
Here's what you should look for in a credit card:
1. Avoid high interest rates. Credit card companies disclose the interest rate in several ways, but you want to look at the Annual Percentage Rate (APR). This is the amount of interest, transaction fees, and other charges that you will pay per year, expressed as a percentage. It is the best indicator of the actual interest you will pay.
2. Avoid low introductory rates. Some cards have a low "introductory rate" (also called a "teaser rate"). After a few months, the interest rate will skyrocket. Also, sometimes the advertised rate only applies to certain people, such as those earning a high income. The card company charges a much higher rate to those who don't qualify - which could mean an unpleasant surprise when your first bill arrives. (continued...)
5 Comparison Shopping Tips When Applying For A Credit Card
About The Author
Bettr Barista Coffee Academy, a social enterprise that adopts a whole-person approach devoted towards enriching the lives of disadvantaged women and at-risk youth, bagged the President’s Challenge Social Enterprise Start-up of the Year award with a trophy and $10,000 prize money.